View more on these topics

Budget 12: VCT and EIS annual investment limit changed to £5m

The annual investment limit for a VCT and EIS investing in a qualifying company has been revised down to £5m, after it was announced in last year’s Budget that it would be increased to £10m.

In last year’s Budget statement, Chancellor George Osborne announced the Government would raise the annual limit for qualifying investment companies by 400 per cent to £10m for both vehicles.

Hargreaves Lansdown investment manager Ben Yearsley says: “You have to remember where the investment limit is coming from. It was being increased from £1m to £10m. £5m is a still very workable amount for  a VCT manager to work with.”

The Government also reiterated its stance revealed in the Autumn Statement to introduce a disqualifying purpose test to exclude companies set up for the purpose of accessing relief, bar EIS  and VCTs from investing in some feed-in tariff businesses and a qualifying company from acquiring shares in another company.

The statement said: “For both EIS and VCTs the Government will also introduce a new disqualifying purpose test to exclude companies set up for the purpose of accessing relief, exclude acquisition of shares by a qualifying company in another company and exclude investment in some Feed-in Tariff businesses.”



Former Shadow minister Waterson takes Ship chair

Equity-release trade body Safe Home Income Plans has appointed former Conservative Shadow pensions minister Nigel Waterson as chairman. Waterson replaces Laurie Edmans, who stepped down in December 2011. Waterson says: “This is a historic moment of opportunity for equity release to boost incomes in retirement, fund long-term care costs and generally support a comfortable older […]


Martin Bamford: Everyone has an agenda

A criticism that is often levelled at those who share their opinions on these pages is that they have an agenda. That we all have a vested commercial interest in the views we express should come as no surprise to anyone. Looking at some of the recent scaremongering attached to the new definition of independent […]

Top EU tax official presses for EU consensus over FTT

The European Commissioner for taxation Algirdas Semeta says efforts to introduce a financial transaction tax should be focused on getting all 27 EU member states on board, according to reports. In September, the European Commission proposed imposing a tax of 0.1 per cent on the buying and selling of bonds and shares and a tax […]

Budget 12: Government seeks to make Isa market more transparent

The UK Government has pledged to improve transparency and competitiveness in the Isa market. The Government will work alongside the industry in targeting improvements to transfer periods and information exchange. “The government encourages industry to reduce transfer periods as far as possible, making use of technological advances in how funds are transferred and how information […]

Certification guide

Guide: how to… certify your pension scheme

Certification is highly complex and surrounded by a minefield of information and auto-enrolment jargon, which can make it very difficult to understand. However, for many employers it is a necessary process that must be executed successfully.


News and expert analysis straight to your inbox

Sign up


    Leave a comment